Why is Emotional Intelligence Important?

Why is emotional intelligence – or EQ – in a leader so important? Even more important than cognitive intelligence – or IQ? Well, Daniel Goleman, the author of the book, “Emotional Intelligence,” determined that leaders with high levels of EQ consistently outperformed their objectives by an average of 20%. He also discovered that leaders with low levels of EQ (even those that has genius level IQ’s) consistently underperformed on their objectives by 20%; and these results have been replicated across industries in North America, Europe, and Asia.

Results Speak for Themselves

I have witnessed these kinds of results amongst leaders all over the world and in a range of industries. For example…

The worst leader I have ever been privileged to study (I say privileged because one should always view situations as an opportunity to learn – even if you are learning what not to do), had a Mensa or genius level IQ and next to no EQ. This leader was incredibly smart; however, she demotivated everyone that she came in contact with. In one year, the organization had 50% employee churn and they lost 17% market share.

I witnessed a leader over a period of one short year develop a significant amount of EQ. As a result, I saw the level of employee churn drop drastically, employee engagement rise significantly, and the business’ bottom line improved 21% year-over-year. I have been privileged to witness this kind of turn around multiple times in my career.

Not a Fad

Still think emotional intelligence is a fad, not worth investing in for yourself or your team or just something those with little cognitive intelligence rely on? Then here are two final thoughts on the subject… I have noticed those with high levels of EQ are always being sought after by others, both inside and outside their firms. Conversely, those with low levels of EQ seem to be always updating their resumes and looking for work.